IAG sees performance improve in 1Q
Insurance Australia Group Limited (IAG) said it expects to deliver an insurance margin towards the upper end of its 9–11% guidance for FY10 if operating conditions experienced in the first quarter continue. Managing director and CEO, Michael Wilkins, said the company had seen the underlying performance of the business continue to improve in the first quarter, while also having the added benefit of narrowing credit spreads.
Mr Wilkins also reaffirmed previous guidance of underlying GWP growth in the range of 3–5%.
“However, reported GWP is likely to be affected by the strength of the Australian dollar,” Mr Wilkins said at the company’s AGM.
The company also announced the board’s decision to appoint Brian Schwartz as deputy chairman, with the intention that Mr Schwartz would become the chairman of IAG when James Strong retires at the end of FY10.
“At last year’s Annual General Meeting, I indicated the Board had agreed on the need for stability in the Chair position during the implementation of our revised strategy and changes in management and governance,” Mr Strong said.
“I also informed shareholders when I was re-elected that, under the Board’s tenure policy, this would be my last term as a director and that the Board had engaged professional advisors and would be conducting an orderly exercise to decide on Chair succession and continuing Board renewal.”
As at 1111 AEDT, IAG shares were up 2c to $3.89.
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